Angi (ANGI) AI Stock Analysis

• Market Cap: $782.39M
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): 22.1
• Beta (1Y): 2.01
• Revenue Growth: -17.69%
• EPS Growth: N/A
• Country: US
• Employees: 3,800
• Sector: Communication Services
• Sector Strength: 79
• Industry: Interactive Multi-Media
• EPS (TTM): 0.07
• Shares Outstanding: 81,329,700
• 10 Day Avg. Volume: 1,732,573
• 30 Day Avg. Volume: 1,500,333
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.66
• Price to Cash Flow (P/CF): 4.90
• P/FCF Ratio: 4.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.14
• Price Target Upside: 100.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Angi's overall stock score reflects a mixed outlook. The company's financial health has improved, with no debt and better cash flow, but inconsistent past profitability and revenue growth remain concerns. Technical analysis indicators suggest bearish momentum, while valuation is moderate. Earnings call insights show strategic improvements but also highlight short-term challenges. The overall sentiment is cautiously optimistic, with potential for future growth contingent on maintaining strategic improvements.

Positive Factors

Earnings

Revenue of $268 million exceeded expectations by $14 million, and EBITDA margins were better than anticipated.

Operational Strategy

The user experience is expected to be substantially better after transitioning to the new opt-in platform, driving higher conversion and usage rates.

Negative Factors

Revenue Guidance

The initial 1Q guide was softer than expected, which may lead to a 2-3% drop in consensus revenue.

Angi Business Overview & Revenue Model

Company Description

ANGI Homeservices, Inc. is a holding company, which engages in the provision of digital marketplace for home services. It operates through the North America and Europe segments. It offers consumer services and service professional services. The North America segment includes the operations HomeAdvisor, Angie's List, Handy, mHelpDesk, HomeStars and Fixd Repai. The Europe segment includes the operations of Travaux, MyHammer, MyBuilder, Werkspot and Instapro. The company was founded on April 13, 2017 and is headquartered in Denver, CO.

How the Company Makes Money

Angi makes money primarily through its service professional membership fees, advertising, and lead generation services. Service professionals pay for membership to gain access to Angi's vast consumer base, which can lead to increased job opportunities. Additionally, Angi generates revenue by providing service professionals with leads, which are potential customers looking for specific services. The company also earns money through advertising by offering promotional services to businesses that wish to increase their visibility on the platform. Significant partnerships with other service providers and platforms can enhance Angi's revenue streams by expanding its service offerings and reach.

Angi Financial Statement Overview

Summary

Angi demonstrates a turnaround in financial performance with improved profitability and cash flow generation in 2024 following periods of instability. The balance sheet shows strengthened financial health with zero debt, indicating reduced financial risk. While profitability and revenue growth have been inconsistent historically, recent improvements suggest potential for future growth, contingent on maintaining cost controls and revenue enhancements.

Income Statement

Angi's income statement shows a mixed performance. The company's gross profit margin is high, indicating cost efficiency. However, the net profit margin has been volatile, with recent improvements in profitability in 2024 after a loss in 2023. Revenue growth has been inconsistent, showing a decline in recent years. The EBIT and EBITDA margins indicate a slight positive trend in operational efficiency for the most recent year, but historical data shows fluctuations.

Balance Sheet

Angi's balance sheet is relatively strong with a zero debt position in 2024, improving from a significant debt level previously. The company exhibits a healthy equity ratio, reflecting financial stability. Return on Equity shows improvement in 2024, indicating better utilization of equity. However, historic liability levels have been substantial, suggesting a need for cautious financial management.

Cash Flow

Angi's cash flow statement highlights a robust operational cash flow in 2024, with significant free cash flow growth compared to the previous years. The operating cash flow to net income ratio is solid, reflecting effective cash generation from operations relative to net income. However, free cash flow to net income ratio shows some instability in earlier years, which has improved recently.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.83B	1.19B	1.36B	1.89B	1.69B	1.47B
	Gross Profit
1.40B	1.13B	1.30B	1.45B	1.36B	1.29B
	EBIT
-98.73M	21.89M	-26.50M	-100.30M	-76.51M	-5.15M
	EBITDA
-26.03M	128.90M	93.49M	16.85M	4.67M	90.37M
	Net Income Common Stockholders
-100.30M	36.00M	-40.94M	-127.98M	-70.49M	-4.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
416.43M	416.43M	364.04M	321.15M	428.14M	862.70M
	Total Assets
1.83B	1.83B	1.86B	1.91B	2.01B	2.37B
	Total Debt
509.66M	509.66M	565.39M	512.19M	494.55M	712.28M
	Net Debt
93.23M	93.23M	201.35M	191.04M	66.42M	-100.43M
	Total Liabilities
767.93M	767.93M	811.71M	856.40M	864.61M	1.06B
	Stockholders Equity
1.06B	1.06B	1.04B	1.05B	1.13B	1.27B
Cash Flow		Free Cash Flow
-142.60M	105.45M	57.06M	-89.28M	-64.01M	135.93M
	Operating Cash Flow
-45.97M	155.94M	104.84M	27.07M	6.21M	188.42M
	Investing Cash Flow
-122.08M	-50.41M	-46.23M	-116.09M	-45.07M	-103.95M
	Financing Cash Flow
-53.65M	-53.76M	-16.98M	-17.23M	-345.17M	337.05M

Angi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANGI, the sentiment is Negative. The current price of 1.57 is below the 20-day moving average (MA) of 1.70, below the 50-day MA of 1.73, and below the 200-day MA of 2.11, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.95 is Neutral, neither overbought nor oversold. The STOCH value of 35.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ANGI.

Angi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YELP	72 Outperform	$2.29B	18.38	17.79%	―	5.61%	37.61%
EXPE	68 Neutral	$21.10B	18.10	79.84%	―	6.64%	69.85%
TRIP	62 Neutral	$1.90B	822.42	0.55%	―	2.63%	-58.77%
ZG	60 Neutral	$16.93B	―	-2.39%	―	14.96%	29.56%
Sector *	59 Neutral	$29.20B	0.14	-13.78%	4.02%	2.18%	-51.50%
ANGI	57 Neutral	$782.39M	22.05	3.42%	―	-17.69%	―
GRPN	44 Neutral	$388.53M	20.68	48.32%	―	-4.85%	―

Angi Corporate Events

Angi Announces Executive Leadership Changes

On February 18, 2025, Angi Inc. announced significant leadership changes impacting its executive team. Chief Technology Officer Kulesh Shanmugasundaram will resign effective March 31, 2025, with a transition agreement ensuring a smooth handover. David Fleischman will transition from Chief Product Officer to Chief Experience Officer, and Kris Boon will be appointed as the new Chief Product Officer, effective March 31, 2025. These changes are aimed at strengthening the company’s leadership as it continues to adapt to the evolving home services market.

Angi Inc. Revenue Falls as IAC Prepares Spin-Off

Angi Inc. reported a decrease in revenue by 11% year-over-year to $267.9 million for Q4 2024, with operating income dropping 72% to $2 million and Adjusted EBITDA falling 23% to $32 million. These declines were primarily due to reduced consumer marketing expenses and fewer service requests, despite a growth in international revenue and an increase in Ads and Leads operating income by 21%. Angi is set to be spun off by IAC, with the transaction expected to close in the first half of 2025, and Joey Levin has been appointed as Executive Chairman, marking a significant shift in the company’s strategic direction.

Angi’s Strategic Spin-Off and Leadership Changes Announced

IAC announced its plan to spin off its full ownership in Angi to IAC shareholders, making Angi a fully independent company. Joey Levin, currently the Chairman of Angi’s board, will become the Executive Chairman, working alongside CEO Jeff Kip to guide Angi’s future growth. The spin-off is expected to offer strategic benefits, allowing both IAC and Angi to focus on their specific market opportunities and leverage a more effective capital structure.